BLOG: New govt e-commerce platform to help rural entrepreneurs

Saurabh KumarIndia has witnessed a phenomenal rise in the eCommerce market in past two years. The better part of this growth story in India has been that it has successfully moved towards bridging the gap between rural India’s aspirations and urban India’s access to symbols of modernity. In last two years, the access of eCommerce companies to the small towns and rural markets has got a big boost due to logistics services being extended by the India Post to eCommerce companies. Revamping India Post, automation of parcel movements and setting up 54 new state of the art parcel hubs across India to cater to the needs of the eCommerce companies has provided ecommerce companies better reach to the small towns and villages. Results have shown that it has not only benefitted the eCommerce companies but also to India Post. The business parcel revenues of India Post which had registered a negative growth of -2% in 2013-14, increased by 45% in 2014-15 and showed a staggering growth of 80% in 2015-16. The cash on delivery collections of India Post after delivery of eCommerce Parcel was Rs.100 Crores in 2013-14. It increased to Rs. 500 Crores in 2014-15 and hit an all-time high of Rs. 1300 Crores by March, 2016. This growth clearly shows how India Post is catalyzing eCommerce growth in India using its vast network of 1.50 lakh Post Offices. However, the eCommerce is largely confined to the movement of goods and services from urban producers to rural buyers. Products made in rural India are still finding it difficult to reach the urban buyers. Arts and crafts made in rural India can be bought at a premium price in fancy outlets in big cities but much of the profit goes into the pockets of the middle men who bring these products to the fancy outlets in big cities. As a result of this, the actual producers- the artisan, weavers, painters and craftsmen languish under poverty while the middle men thrive. Technology is one of the solutions that can address this situation and lead to empowerment of those poor people who are the actual producers of these goods. The Government of India has decided to tap the eCommerce potential to provide direct market access to these millions of poor folks. Union Minister for Communications and Information Technology Shri Ravi Shankar Prasad, on 23rd June, 2016 launched the online platform www.vlebazaar.csc.gov.in for the Village Level Entrepreneurs (VLEs). Using this platform the local artisans and craftsmen can connect with the buyers across the country and sell their products online. Any rural entrepreneur can become a part of this by just registering himself at the nearby Common Service Centre, which are more than 2 lakh in numbers and spread across India. The local Common Service Center will assist them in getting their products registered online. Once the product goes online, anyone can place an order for buying it. The payments received after the sale of the product shall be sent into the bank account of the seller. The person running the Common Service Centre will also receive a small share of that payment as his personal incentive for assistance rendered to the seller in registering and packing the product. This model of eCommerce will cut the supply chain short and connect the buyers and seller directly. It is expected to provide better market access to local products and ensure that the actual financial benefits reaches the person who has created that product. This Digital India initiative attempts to empower people by using the power of technology. Digital India: Power to Empower. Indeed! (These are personal views of the author, who is working with the Ministry of Communications and IT, Govt. of India. Feedback can be sent on his Twitter @saurabhkumar1)